“…Second, the Latin American context shows a disproportional number of concentrated firms. The average local firm has highly concentrated ownership, and sometimes, more than 50% of shares are in the hands of a single shareholder (Martins, Schiehll, & Terra, ; Gonzalez, Molina, Pablo, & Rosso, ). Additionally, alongside with investor protection, the concentration of ownership affects several corporate outcomes such as capital structure and risk taking (Li, Yue, & Zhao, ; Paligorova, ).…”